A condensed income statement by product line for Lavonia Beverage Inc. indicated the following for Vim Cola for the past year: Sales $236,800 Cost of goods (108,000) sold Gross profit $128,800 Operating (142,000) expenses Operating loss $(13,200) It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Because Vim Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis dated November 2 to determine whether Vim Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "O". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Vim Cola Line Item Description Revenues Costs: Variable cost of goods sold Variable operating expenses Fixed costs Profit (loss) November 2 Continue Vim Cola Discontinue Vim Cola Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) 236,800 x